Europe shares fall
Tuesday, 28 October 2008
LONDON, Oct 27 (Reuters): European shares fell more than 4.0 per cent Monday as global recession fears hit banks and energy shares, with Volkswagen a rare exception as Porsche disclosed its increased stake in the carmaker.
By 7:33 a.m. EDT the FTSEurofirst 300 index of top European shares was down 4.30 per cent at 794.28 points, adding to Friday's decline of 4.90 per cent, although it was off a session low of 784.29.
"It is all following from the panic seen in the Far East. The whole thing has gone well beyond what is deemed as sensible. There is probably a lot of distressed selling, hedge funds or mutual funds having to meet redemptions," said Mike Lenhoff, strategist at Brewin Dolphin.
"The market seems to be discounting a severe recession and is focusing on the prospect of a downturn which is longer and deeper than expected," added Lenhoff.
By 7:33 a.m. EDT the FTSEurofirst 300 index of top European shares was down 4.30 per cent at 794.28 points, adding to Friday's decline of 4.90 per cent, although it was off a session low of 784.29.
"It is all following from the panic seen in the Far East. The whole thing has gone well beyond what is deemed as sensible. There is probably a lot of distressed selling, hedge funds or mutual funds having to meet redemptions," said Mike Lenhoff, strategist at Brewin Dolphin.
"The market seems to be discounting a severe recession and is focusing on the prospect of a downturn which is longer and deeper than expected," added Lenhoff.